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DTN Midday Livestock Comments 11/05 11:54
The Livestock Contracts Continue to Drift Lower
Some light cash cattle trade has been noted in Kansas at $218 which is $6
lower than the previous week's weighted average.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is continuing to trade lower as the market simply
cannot seem to find footing in this week's market. Some light cash cattle trade
has been noted in Kansas at $218 which is $6 lower than the previous week's
weighted average. December corn is down 2 3/4 cents per bushel and December
soybean meal is down $0.50. The Dow Jones Industrial Average is down 1,472.14
points and the NASDAQ is down 1,209.41 points.
LIVE CATTLE:
Combine the market's lack of confidence thanks to last week's dramatic sell
off, with the strike threats looming at the Los Angeles and Long Beach ports
(where approximately 25% of beef exports pass through) and you can easily see
why the live cattle complex is struggling. An announcement overnight showed
that the contract at the ports had been temporarily extended from Nov. 6 as
negotiations continue. December live cattle are down $3.77 at $214.22, February
live cattle are down $4.02 at $216.80 and April live cattle are down $3.75 at
$219.45. Some light trade has developed in the fed cash cattle market as sales
of $218 have been noted in Kansas (which is $6 lower than last week's weighted
average) and there's been some live cattle sold in Nebraska at $214 but those
cattle are going to be shipped South as early as next week.
Otherwise, no new trade has developed following the light business that was
noted on Tuesday at $340 in Nebraska. More cattle will need to trade before the
week's over, and at this point it's safe to say that a lower trade is
inevitable.
Boxed beef prices are lower: choice down $0.79 ($361.71) and select down
$2.75 ($353.90) with a movement of 62 loads (37.72 loads of choice, 6.65 loads
of select, zero loads of trim and 17.24 loads of ground beef).
FEEDER CATTLE:
The continued weakness seen throughout the cattle complex is having a toll
on the feeder cattle contracts as they are currently trading $7 to $8 lower.
November feeders are down $7.37 at $324.65, January feeders are down $8.05 at
$317.60 and March feeders are down $8.25 at $312.62. And until some support is
found, and the live cattle market sees some improvement too, the feeder cattle
contracts are likely going to continue to trail lower.
LEAN HOGS:
It's another day and apparently time for the lean hog complex to find
another leg lower in the chart as the market continues to find lower and lower
prices. And while yes midday pork cutout values may be higher -- a mere $0.57
rally isn't enough support to help the lean hog contracts begin to dig
themselves out of the hole they're in. December lean hogs are down $2.90 at
$54.65, February lean hogs are down $3.05 at $59.25 and April lean hogs are
down $2.50 at $65.82. The projected lean hog index for Nov. 4, 2026 is down
$1.07 at $62.86 and the actual index for Nov. 3, 2026 is down $1.06 at $63.93.
Hog prices are lower on the Daily Direct Morning Hog Report, down $1.21 with a
weighted average price of $40.29, ranging from $39 to $49 on 1,046 head and a
five-day rolling average of $48.79. Pork cutouts totaled 217.18 loads with
190.51 loads of pork cuts and 26.67 loads of trim. Pork cutout values: up
$0.57, $69.86.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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